Republicans may not abstain from participation!

Thousands of bloggers will hold you accountable

Republicans will not be allowed to sit out

You’ve admitted this is your strategy

It is not acceptable

No congressional abstinence, period

Did Democrats Cause Crash?

Let’s put this in perspective.  The entire global banking system is imploding.  Governments across the entire planet are propping up, buying, nationalizing, insuring, lending to nearly every bank and investment firm in existence.   Those not yet affected will be affected by those presently failing as well as those yet to fail.  They all rely on each other.  When one fails another loses assets.  It is a positive feedback loop with devastating consequences. 

As we ask ourselves, did the democrats cause this, we have to put it all in perspective with this question;  Is is possible that a calamity of this magnitude was caused by Barney’s equal housing campaign?  Let’s think this through.  The sub-prime market was but a small piece of the global economy.  There ARE many factors at play.  Sub-prime is only one of them.  Congress may have encouraged sub-prime experimentation.  Congress did not pass any piece of legislation, though, directing any bank or investment firm to abuse derivatives or credit default swaps.  This problem is exponentially bigger than a trillion odd dollars in sub-prime  mortgages that still have a true present and future cash value.   

The Bush administration did in fact push this bubble up and up and up.  Please open a new browser window, go to www.google.com and put the words Office of the Comptroller of the Currency in the search window.  Dig and dig, America.  There is plenty of blame to go around, and much of it lands squarely on the Bush administration. 

All this said, within the past three weeks John McCain said the economy is fundamentally sound.   We now know without any doubt that John McCain’s understanding of the gravity of the situation could not have been more wrong.  John McCain is not qualified to lead America at this time.   Sit down, John.  Take a deep breath.  Then retire.

Go to:  http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

Some Incarnation of the “Bailout” is essential – link here to NPR interview

How Bush Averted A Money Market Panic

 

In the link above you will hear how President Bush took decisive action last week to avert a possible money market meltdown by creating immediate assurance / insurance on money market funds following the failure of a major money market. 

We can only hope both houses have the nerve and insight to turn this into something structured, intelligent.   If they can structure a plan that creates some combination of short-mid-and -long range liquidity, they should move forward.   The following conditions apply:

1. They do not violate Darwin’s Law – the weak and guilty must not be saved
2. Natural retraction of markets must be allowed to take place… equity, real estate…
3. Government takes ownership of saleable assets
4. Liquidity is the ONLY objective